Medium-term notes are fixed-interest debt securities issued by Swiss banks.

Medium-term notes are a customized investment, and they generally offer higher returns than a savings account. Throughout the term - fixed between two and eight years - the rate of interest remains the same and the medium-term note is repaid at the expiration of this period. Annual interest is drawn with the coupon attached to the medium-term note. You can either have it paid out in cash, or credited to your account. Medium-term notes are not traded on the stock exchange. They therefore represent a secure mid- to long-term investment when there is turbulence on the markets.

Key Features

-          Minimum amount: CHF 1'000 (no ceiling)

-          Term: anywhere between two and eight years

-          Commission: 0.06% per whole and partial annual term

-          Withholding tax: 35%

Your Benefits

Optimum investment of assets that are not required in the medium or long term. The level of attainable interest depends on conditions in the capital market

Risks

-          Credit risk (credit rating of the issuing bank)

-          Interest rate risk (rising interest rates during the term of the bond result in price losses)